The key to any success in life is research and that is no different when it comes to business startups. Business is all about bringing a products and service to market and selling them to consumers for a profit. Without market research, it is impossible to confidently predict whether your product or service will sell. Locating a viable market means finding one that is big enough to support your business, as well as providing the chance to grow and expand. If the market is too congested, your competitors will simply outdo you. Similarly, if the market is too then you will hit a ceiling very quickly.
Market research is best explained with a real-world example. Let’s say that a person wants to offer internet services in their town and research shows there are only 12 local people with access to electricity. In this case, even if the business attracts 100% of the available market and the average person pays $40 a month for internet services, the business would only ever generate a maximum of $480 per month in revenue. This would not be viewed as a viable market, unless the businessperson in question was satisfied with company earnings of just $480 per month.
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